Lecture Suggestions - Chapter 12Example 1: ABC Classification System1. Select the Example 1 worksheet2.although the 12 items for his example are in order according to dollar value, this is not necessary,the items can be entered in any order.3. Delete the values for A and B.4.up one time, you should have A = 42,000 and B=18,000.5.A and B are the lower limits for the A and B classifications and as you click a spinner button thevalue for A or B will change to the next higher (or lower) dollar value in the table. At the same timeall the items are classified according to the current values for A and B.6.Now scroll back up so you can watch the graph and the table at the top of the template and low volume in classification A and low value, high volume in classification C.Example 18: Single Period Model1. Select the Example 18 worksheet2.3.4.5.Poisson distribution) to be .0183, i.e. 18% of the time there will be a demand of zero.

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